-
Sep 22, 2025
Managing wealth across multiple jurisdictions presents unique challenges for British expatriates living in Singapore.
Understanding UK Non-Resident Tax Implications
The UK tax system has grown increasingly elaborate, thanks to revenue-raising tweaks such as the freezing of many elements and multiple reforms of dividend taxation. With more changes possible in the coming Autumn Budget – even after last year's £40 billion of Budget tax rises – the complexities are only likely to increase. This guide offers a brief outline of how your investments are currently taxed and future changes (or freezes) that have already been announced, including those set out in the 2024 Autumn Budget. The Covid-19 pandemic and 2022 energy price spike both hit government finances hard and ever since, successive Chancellors (and their Scottish counterparts) have been taking significant steps to raise revenue
Pension Transfer Considerations: QROPS vs. Retention
The decision to transfer UK pensions overseas through Qualifying Recognised Overseas Pension Schemes (QROPS) requires careful analysis of your specific circumstances. While QROPS can offer investment flexibility and potential tax advantages, they're not suitable for everyone. The 25% overseas transfer charge and ongoing compliance requirements can significantly impact the benefits, particularly for those planning to return to the UK.
Retention of UK pension schemes may prove more advantageous for expatriates maintaining strong UK ties or those with modest pension values. The security of UK pension protection schemes, combined with established investment governance, often outweighs the perceived benefits of transfer. However, for long-term expatriates with substantial pension wealth, QROPS can provide enhanced investment control and estate planning benefits.
The key considerations include your intended retirement location, the size of your pension funds, and your overall tax planning strategy. Singapore residents may benefit from the absence of tax on pension income, but this must be balanced against potential UK tax charges and the loss of UK pension protections.
With evolving tax regulations and complex pension transfer rules, understanding your options has never been more critical. The key lies in developing a comprehensive strategy that addresses both UK tax obligations and Singapore residency benefits while protecting your long-term financial goals.
Estate Planning for Multi-Jurisdictional Assets
Cross-border estate planning requires sophisticated strategies to minimize inheritance tax exposure while ensuring efficient wealth transfer. British expatriates often face complex scenarios where assets are held across multiple jurisdictions, each with different tax treatments and succession rules. The interaction between UK inheritance tax, Singapore's absence of estate duty, and potential third-country complications requires expert navigation.
Offshore trust structures may provide effective solutions for inheritance tax planning, particularly for non-UK domiciled individuals or those planning permanent emigration. However, recent changes to UK trust taxation and increased disclosure requirements mean that traditional structures require regular review and potential restructuring. The use of insurance-based solutions and pension death benefits can provide tax-efficient wealth transfer opportunities while maintaining flexibility for changing circumstances.
Proper estate planning extends beyond tax efficiency to include succession planning for business interests, particularly for expatriate entrepreneurs with cross-border operations. Ensuring continuity of business operations while minimizing tax exposure requires integrated planning that considers both personal and corporate structures across multiple jurisdictions.
Investment Philosophy
At Obsidian, our investment philosophy centres on a disciplined, evidence-based approach grounded in rigorous research and long-term value creation. Here are the pillars that define our strategy: